The Risk of Litecoin (LTC) Price Breakdown
In the world of digitalย currency, the Litecoin (LTC) price is facing a probable breakdown. The long-term ascending support line has been breached, and now thereย is a risk of breaking down from the horizontal support area. The outcome of this situation will have a wholeย lotย of impact on the future direction of LTCโs trend.
LTC Price Analysis: Bearish Outlook on Weekly Timeframe
Andย once analyzing the weekly timeframe, a bearish outlook emerges. The breakdown from the 427-day ascending support line impliesย that the previous trend is over and a new one has begun in the opposite direction. Regardlessย of this, LTC continuesย to trade within the $60 horizontal area, which has served as both support and resistance overย recentย months. The area has shown indicationsย of buying pressure with a bounce and a long lower wick. Nonetheless, thereย is likewise resistance at the previous ascending support line, indicating a common movement after breakdowns.
The future trend will depend on whether the price breaks down from the $60 area or bounces back. A bounce and reclaim of the ascending support line could lead to a 55% increase towards the long-term resistance at $100. Conversely, a breakdown from the $60 area could result in a 25% fall to the closest support at $50.
RSI Bearish Outlook and Bitcoinย (BTC) Options Impact
Inย addition, the Relative Strength Index (RSI) is bearish, confirming the downward trend. Traders use the RSI as a momentum indicator, assessing whether a market is overbought or oversold and making decisions to buy or sell. With the RSI below 50 and decreasing, it signals a bearish trend.
Althoughย while there are no wholeย lotย of Litecoin news asย ofย now, the expiration of $640 Million in Bitcoinย (BTC) options today could potentially affect the LTC price.
Will Bullish Divergence Reverse the Trend?
On the daily timeframe, the analysis provides a mixed outlook. The price hasย dropped under a descending resistance line since its yearly high, indicating a bearish trend. Nonetheless, the daily RSI shows positiveย trend signs with a breakout from its own trendline and positiveย trend divergence. Inย addition, it has moved out of oversold territory. These indicators suggest a possible upward movement.
The fact that the RSI turned positiveย trend at an important long-term horizontal support area further supports theย capacity for a positiveย trend reversal. Nonetheless, until the price breaks out from the descending resistance line, the trend cannot be considered bullish.
Price Prediction: Breakout or Breakdown
The prediction for LTCโs price will depend on whether thereย is a breakout from the descending resistance line or a breakdown from the $60 area. A breakout could result in a 55% increase, while a breakdown may lead to a 25% drop.
Hot Take: The Destiny of Litecoin Hangs in the Balance
Futureย ofย the Litecoinโs price is uncertain as it hovers near key support and resistance levels. Traders and investors must closely monitor theย capacity breakout or breakdown to make notified decisions. The outcome will determine whether LTC continuesย its upward trajectory or succumbs to further downward pressure. As the cryptocurrency market evolves, remaining notified and adapting to changing trends is critical for success.
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